Skills shortage big barrier, shows survey

A lack of skilled workers is a bigger problem for New Zealand business owners than their counterparts in 23 other countries, a survey says.

Half the 150 Kiwi firms questioned in the annual Grant Thornton International Business Owners survey said a lack of skilled workers was their biggest barrier to expansion.

These findings back up those from the New Zealand Institute of Economic Research's last quarterly survey. In January, it said companies were finding it more difficult to recruit staff than at any time since 1974.

Most local businesses told Grant Thornton, an accounting and business advisory firm, they were more focused on attracting and keeping key staff now than they were a year ago.

Grant Thornton said this lack of skilled labour was consistent with the strong economy. At 3.6 per cent, New Zealand has the lowest unemployment rate in the OECD.

Grant Thornton also blamed the shortage on a "hangover" from inadequate training of tradesmen in the 1990s.

In response to other questions, 39 per cent of New Zealand firms said regulation was the biggest constraint on expansion, 20 per cent cited lack of working capital, 18 per cent blamed reduced demand, 16 per cent fingered the cost of finance and 10 per cent pointed to a shortage of long-term finance.

The firm's survey polled 6300 medium-sized businesses from 24 countries.